Peter Moore: The future of Xbox lies in the cloud, not in consoles

Former Xbox executive Peter Moore is convinced that the future of the console is a digital one—that cloud gaming, streaming, and Game Pass are the way the wind is blowing. He also believes that Microsoft, if given the chance, would prefer to stop making hardware altogether.

During an interview on Danny Peña's podcast, Moore expressed that if Microsoft had the opportunity, they would undoubtedly prefer to deliver entertainment directly to users' screens without the need for dedicated hardware. He compared this to a "classic Netflix model," where players could jump into games instantly, without delay, and without requiring a physical console between their controller and TV.

"You know, the classic Netflix model, you just select - 'Who's playing this? 5000 people playing this? I'm going to jump in right now', no latency, no lag, you're in, and there doesn't need to be a box between you and your controller and the TV set. But still, you know, consoles are - as we've seen particularly with Nintendo now - people love their hardware."

However, Moore acknowledged that there still seems to be a strong demand for consoles, as demonstrated by the success of the Nintendo Switch. Even though technology has advanced to the point where, in theory, we could fully transition to a Netflix-style gaming experience without the need for dedicated hardware, physical consoles continue to have a place in the market.

If we are to believe Xbox head Phil Spencer, Microsoft plans to continue producing consoles for the foreseeable future. Whether this is just PR talk remains to be seen, but Game Pass is only growing, and as Xbox games become available on more platforms, more people may begin to question whether Microsoft should remain in the hardware business at all.

What do you think? Is Xbox's future a digital one as a streaming service and distributor rather than a console manufacturer?